[16] Which of the following is a correct statement regarding one of the ASPE capitalization criteria?

Select one:

a.

The lease transfers ownership of the property to the lessor.

b.

The lease must contain a bargain purchase option.

c.

The lease term is 75% or more of the leased propertys estimated economic life.

d.

The fair value of the minimum lease payments is equal to 90% or more of the present value of the leased asset.

e.

None of the above.

[10] Assume a corporation has no contributed surplus booked. When shares are reacquired at a cost greater than their original issue price and cancelled, what account(s) should be debited?

Select one:

a.

The share account for the total cost.

b.

The share account for the original issue price and contributed surplus for the difference.

c.

The share account for the average per share amount and retained earnings for the difference.

d.

The share account for the average per share amount and a loss account for the addifference.

e.

none of the above

[07] Which of the following best describes current IFRS in accounting for leases?

Select one:

a.

Only long-term leases containing a BPO are capitalized..

b.

Leases are not capitalized.

c.

All leases are capitalized with few exceptions that relate to the short length of lease or immaterial amount.

d.

Leases similar to instalment purchases are capitalized.

e.

Only lease contracts for equipment and property are capitalized.

[05] The pre-emptive right, or the right of first refusal, of a common shareholder is the right to

Select one:

a.

share proportionately in corporate assets upon liquidation

b.

exclude preferred shareholders from voting rights

c.

share proportionately in any new issues of shares of the same class

d.

prevent a director of a company from voting at the company's annual general meeting

e.

receive cash dividends before they are distributed to preferred shareholders

[03] According to IFRS, the pension obligation should be based on

Select one:

a.

all years of serviceboth vested and non-vestedusing current salary levels.

b.

only the vested benefits using current salary levels.

c.

both vested and non-vested service using future salaries.

d.

the equation as prescribed under the tax law.

e.

all of these